The six members of the Gulf Cooperation Council, namely, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain and the United Arab Emirates, recently announced that they are discontinuing the so-called secondary and tertiary levels of the Arab League Boycott of Israel. This decision was apparently made in response to the recent improvement in Israeli/Palestinian relations.

Although no indication was given as to when this change in policy would be officially implemented in these countries, it appears that the new policy may ease the way for many companies to conduct business in the countries concerned. The secondary and tertiary aspects of the boycott prevent any companies that conduct business with Israel, or that do business with companies or individuals with links to Israel, from undertaking business in the Arab Boycott countries.

Clients are cautioned that the Gulf Cooperation Council announcement has not changed the United States' position with regard to the boycott and that those who are subject to United States laws and wish to conduct business in the Arab Boycott countries must still comply fully with the laws in the United States concerning the boycott.